Schaeffer's Top Stock Picks for '25

Alibaba, Verizon, D.R. Horton News Today

Today's stocks to watch in the news include Alibaba Group Holding Ltd (BABA), Verizon Communications Inc. (VZ), and D.R. Horton, Inc. (DHI)

Jan 24, 2017 at 9:25 AM
facebook X logo linkedin


Investors are parsing a heavy round of corporate earnings this morning, and U.S. stocks appear set for a slow start. Among specific equities in the spotlight are China-based online retailer Alibaba Group Holding Ltd (NYSE:BABA), telecommunications stock Verizon Communications Inc. (NYSE:VZ), and homebuilder D.R. Horton, Inc. (NYSE:DHI). Here's a quick look at what's driving BABA, VZ, and DHI.

Alibaba Beats on Revenue Thanks to Single's Day Sales 

BABA is up 4.5% ahead of the bell after the company reported quarterly revenue above expectations, citing strong sales on Single's Day. The firm also raised its full-year outlook for 2017. The stock has added more than 41% year-over-year, at $98.41, and appears set to break out above the round $100 level. But while options buyers have been busy targeting Alibaba Group Holding Ltd calls in recent weeks, near-term traders have hit a put-skewed extreme. Specifically, the stock holds a Schaeffer's put/call open interest ratio (SOIR) of 0.95 -- the highest of all comparable readings from the past 12 months. Simply stated, put open interest is unusually heavy, relative to call open interest, among options set to expire in three months or less.

Disappointing Subscriber Growth Sinks Verizon

An earnings miss has VZ set to slide 3.7% at the open, with the telecom firm reporting fewer-than-expected subscribers added during the fourth quarter. Meanwhile, concerns persist about Verizon Communications Inc.'s planned purchase of Yahoo! Inc.'s (NASDAQ:YHOO) core internet business, after Yahoo said Monday the deal wouldn't close until the second quarter of this year. Analysts have yet to weigh on this morning's results, though the majority already call VZ -- which closed yesterday at $52.41 -- a "hold" or "strong sell." Options traders have been taking a glass-half-empty approach lately, as well. The stock's 10-day put/call volume ratio of 1.01 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits near the top quartile of its annual range.

D.R. Horton Tops Expectations as New Orders Rise

DHI surpassed estimates for new home orders during the last fiscal quarter, helping the company easily blow past earnings expectations. The news has D.R. Horton, Inc. up 5.2% in pre-market trading, and should these gains materialize, the stock could be on track to repeat a bullish historical trend. At $28.74, DHI is up 8.9% over the past 12 months, and Monday broke out above its 80-day moving average, which had been pressuring the shares since early December. Near-term options traders haven't exactly been expressing confidence toward DHI. Its SOIR of 1.54 -- showing puts easily outnumbering calls among options in the front three months' series -- rests just 1 percentage point from a 52-week high. Today's upbeat news could shake some of these seemingly bearish traders loose, however, which could be a boon for the stock. 

Stay on top of overnight news & big morning movers. Sign up now for Schaeffer's Opening View.

 
 

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

10 Stock Picks FREE
 
 

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade.  Professional traders have rushed into the market and are making a mint.  Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.

 

 
 

FREE Report Download

 

Follow us on X, Follow us on Twitter